If you pay your employees competitively and focus on a healthy work atmosphere, then it’s easy to recruit all the talent you need, right? As it turns out, this is flawed logic. In most cases, it’s difficult to hire quality employees, even when the pay is decent and the atmosphere is warm. In today’s world, it takes more to hire and retain top talent.
Is there a talent shortage?
In April 2016, the economy set a new all-time record of 5.85 million unfilled job openings. This was the highest since the BLS started collecting surveys of open jobs in 2000, according to Glassdoor. The jobs are there, but why aren’t they being filled?
There is a shortage of qualified employees due to an increase of hiring. In fact, 40% of global employers report talent shortages. According to a study done by SmartRecruiter, 52% of hirers have decided to not hire at all because they can’t find the right fit. Also, 55% of companies who participated in the study say it takes over 2 months to find the right candidate. For many industries, a large amount of unfilled jobs directly impacts their bottom line and are forced to continuing the expensive recruitment process to fill the gaps.
You can use this simple two-step equation to see exactly how much an unfilled position costs your bottom line:
R = Annual Company Revenue
E = Number of Employees
Step 1: Calculate Revenue per Employee
R / E = Revenue per Employee
Step 2: Calculate Daily Revenue per Employee
Revenue per Employee/365 = Daily Revenue per Employee
Which industries are most affected?
When we hear about talent shortages, we often think about the tech industry or jobs that require a skill set associated with higher education and high-paying salaries. But that might not always be the case.
As it turns out, Indeed recently ranked professions most difficult to hire for, by the number of postings that went unfilled for more than 30 days.
The top ten were:
- Power Distributors and Dispatchers
- Pile-Driver Operators
- Tax Preparers
- Electric Motor, Power Tool, and Related Repairers
- Vocational Education Teachers, Postsecondary
- Cargo and Freight Agents
- Tire Repairers and Changers
- Pharmacy Technicians
Many of the occupations on this list like manufacturing, transportation and utility positions are hourly wage jobs. In addition, these industries happen to coincide with the Bureau of Labor Statistics list of professions with the highest ‘quit’ rates.
In industries that are difficult to attract talent for, and difficult to retain top talent, what can employers do to protect their bottom line and ensure productivity?
Get the leg up on your competition
But how can you differentiate yourself from your competition? One idea is through payment incentives.
Our software, DailyPay, allows employees to be paid daily, at no cost or payroll disruption to your company. Users of the application can see exactly how much they have earned since their last paycheck and are able to withdraw the amount they have available, everyday, if they’d like.
A recent study conducted by us shows that employees who are offered DailyPay at their work are more engaged. In fact, 73% of DailyPay users say they are motivated to come to work. Additionally, companies that use DailyPay experience 38% reduction in turnover. Best of all, applicants were 1.9 times more likely to apply for the job with daily pay versus the job weekly pay.
We’d love to talk to you about how DailyPay can improve your chances of securing talent in a tight and competitive labor market.